KK Fashion Exports

Import duty on bandanas from India to Hungary

Rates verified on · Updated

Bandana in cotton, hemmed, no lace or embroidery · India → Hungary

8% import duty

under the EU GSP, with proof of Indian origin (normally 10%).

Plus 27% Import VAT, which VAT/GST-registered importers usually recover.

Full breakdown and calculator →

What’s happening: EU–India trade agreement

  1. Negotiating
  2. Concluded
  3. Signed
  4. Ratifying
  5. In force

Negotiations concluded on 27 January 2026. The Commission proposed the signing decision to the Council on 11 September 2026. Next: Council decision, signature, European Parliament consent, ratification.

When it applies: No official date announced. It cannot apply before signature, Parliament consent and ratification on both sides.

Garment from IndiaDuty today, best rate available nowUnder the agreement, once in force (not yet)
Dresses9.6%0%
Kaftans9.6%0%
Skirts9.6%0%
Scarves and stoles6.4–9.6%0%
Tops and blouses9.6%0%
Bandanas8%0%
Beach and bath towels9.6%0%
Fabric bags0%0%

0% from the day it enters into force (draft EU schedule, every garment line). Draft origin rule: the fabric must be woven or knitted in India or the EU. Garments sewn from imported fabric would stay on today's rate.

Latest

  • Reported India-EU FTA may enter force by early 2027: EAM Jaishankar | Tap to know more | Inshorts Inshorts
  • Reported India-EU Free Trade Deal Targets 2027 Implementation, Says EU Envoy KalingaTV
  • Reported FTA with India to enter into force in 2027, says EU ambassador Jean-Eric Paquet Business Today
  • Reported India-EU FTA to be a ‘game changer’: EU envoy Jean-Eric Paquet. The 2026 aim is to conclude and sign the pact by year-end; entry into force is expected in 2027, as the other reports say Moneycontrol.com
  • Reported India-EU FTA to be signed in Dec, trade deal expected to take effect by mid-2027: EU ambassador Paquet | India News Hindustan Times
  • Reported France's minister for European affairs, Benjamin Haddad, said the deal could remove €4 billion a year in tariffs and double EU–India trade. The €4 billion is the Commission's estimate of duty savings for EU exporters to India. The Tribune (ANI)

Confirmed = an official government or EU source. Reported = press only; not yet in an official text.

What it means for garment importers →

  1. EU–India trade agreement — status and texts — European Commission. Checked 2026-10-07.
  2. Proposal for a Council Decision on the signing of the EU–India Free Trade Agreement, COM(2026) 483 — Council of the EU. Checked 2026-10-07.

Bandanas made in India pay 8% import duty in Hungary under the EU GSP (applies now (2026–2028 list); renewed scheme from 1 Jan 2027), instead of the standard 10%. Import VAT of 27% is added at import, recoverable by registered businesses.

Duty on bandanas by fabric

FabricStandard dutyWith EU GSP
Cotton, hemmed, no lace or embroideryEU CN code 6213200010%8%
Polyester or other man-made fibreEU CN code 6213900010%8%
Silk (70% or more)EU CN code 6213900010%8%

Which HS code applies?

A square bandana no larger than 60 cm a side is a handkerchief in the tariff (HS 6213): cotton 6213.20, silk and other fibres 6213.90. A bandana larger than 60 cm a side, or a rectangular one, is a scarf (HS 6214, see the scarves page), and a knitted one is 6117.10. In the US the cotton line splits again: hemmed with no lace or embroidery is 6213.20.10; embroidered or with lace is 6213.20.20, at a different rate.

HS code for bandanas by fabric: UK, US and EU lines →

Duty and VAT calculator

Customs valueinvoice + freight + insurance (CIF)EUR 10,650.00
Customs duty (EU GSP)8% × customs valueEUR 852.00
Import VAT (27%)27% × (customs value + duty)EUR 3,105.54
Duty and charges payablenot recoverableEUR 852.00
Total at import incl. Import VATImport VAT is usually recoverable if you are registeredEUR 3,957.54

EU customs value is CIF: the invoice value plus freight and insurance to the EU border (Union Customs Code Art. 71). Import VAT is charged on the customs value plus duty.

Worked example

Take a shipment of hemmed cotton bandanas (code 62132000), invoiced at EUR 10,000 with EUR 600 freight and EUR 50 insurance, entered with proof of origin for the EU GSP. Customs value: EUR 10,650.00. Customs duty (EU GSP): EUR 852.00. Import VAT (27%): EUR 3,105.54. Duty and charges payable: EUR 852.00. Total at import incl. Import VAT: EUR 3,957.54. Change the inputs above to model your own order.

Duty news: Hungary

  • EU–India FTA: Commission proposes the signing decision
    The European Commission sent the Council its proposal to sign the EU–India Free Trade Agreement (COM(2026) 483). The agreement is not yet signed and does not apply; Indian garments still pay the EU GSP rate (9.6% on most garments). Source: Council of the EU, European Commission

EU GSP: 9.6% on Indian garments (instead of 12%)

Applies now (2026–2028 list); renewed scheme from 1 Jan 2027

India is a standard GSP beneficiary. Under Implementing Regulation (EU) 2025/1909 the EU suspended GSP for Indian textiles (section S-11a, chapters 50–60) for 2026–2028, but not for apparel (S-11b, chapters 61–63). So Indian garments still get the GSP rate — 9.6% instead of 12% on most garments, 6.4% instead of 8% on woven scarves. A renewed GSP regulation, (EU) 2026/1395, applies from 1 January 2027 and needs a fresh list of suspended sections; we will update this page when that list is published.

How your shipment gets the lower rate

The exporter must be registered in the EU's REX system and put a statement on origin on the invoice. Your customs broker uses it to claim the GSP rate. We are an Indian exporter and handle the origin paperwork with each shipment.

EU–India FTA: expected 0% on garments

Concluded 27 Jan 2026 · not yet signed · not in force

The EU and India concluded negotiations on 27 January 2026. The Commission proposed the signing decision to the Council on 11 September 2026; after signature the European Parliament must consent and both sides must ratify, so it does not apply yet. The draft EU schedule eliminates duty on every garment line (chapters 61–63) on the day it enters into force. The draft origin rule for woven garments is stricter than the UK's: the fabric must be woven (or knitted) in India or the EU, so garments sewn from imported fabric would not qualify. No official entry-into-force date has been announced.

Hungary import VAT on garments: 27%

Clothing carries Hungary's standard 27% VAT, charged at import on the customs value plus duty.

Getting it back with a VAT/GST registration

An EU VAT-registered business deducts import VAT as input tax on its VAT return. Several member states let you account for it in the return instead of paying at the border (Article 211 of the VAT Directive — e.g. the Netherlands' Article 23 licence, Belgium's ET14000); Germany offers a customs deferment account.

Guides

Sourcing from India? We make these garments.

KK Fashion Exports manufactures and exports kaftans, dresses, skirts, scarves and resortwear from India. We issue the certificate of origin for every qualifying shipment and help your broker claim the lower duty.

Duty on bandanas in other countries

Other garments into Hungary

Sources

  1. Access2Markets tariff data (EU) — European Commission, DG Trade. Checked 2026-10-18.
  2. Proposal for a Council Decision on the signing of the EU–India Free Trade Agreement, COM(2026) 483 — Council of the EU. Checked 2026-10-07.
  3. EU–India trade agreement — status and texts — European Commission. Checked 2026-10-07.
  4. Commission Implementing Regulation (EU) 2025/1909 — GSP sections suspended for 2026–2028 (India: S-11a textiles only, not S-11b apparel) — EUR-Lex. Checked 2026-10-07.
  5. Regulation (EU) 2026/1395 — renewed GSP from 1 January 2027 — EUR-Lex. Checked 2026-10-07.
  6. GSP and the Registered Exporter (REX) system — European Commission, Access2Markets. Checked 2026-10-07.
  7. VAT Directive 2006/112/EC, Articles 85–86 and 211 — EUR-Lex. Checked 2026-10-07.
  8. Taxes in Europe Database (VAT rates) — European Commission, DG TAXUD. Checked 2026-10-07.

Indicative estimate built from official tariff sources, not a customs ruling. The duty your customs authority charges depends on the exact classification, origin proof and valuation of your shipment; confirm with your customs broker before you rely on it.

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